Government
BY CONNOR PITTMAN
Flower Mound could adopt a cost recovery policy, a legally defensible framework setting targets to recoup non-capital expenses for provid- ing programs and services, after discussing the initiative in early January. The overview New Flower Mound policy could adjust program fees tiers of services, with increases associated with the level of benefit to an individual compared to the community. Programs with more individual benefit, such as the summer swim team, may have fees to recover some expenses, putting them in a higher tier of cost recovery, Chief Financial Officer John Zagurski said. The town’s policy cannot covering capital
Tier 1: 0%-10% recovery Primary community benefit Tier 2: 11%-40% recovery Considerable community and some individual benefit Tier 3: 41%-60% recovery Balanced community and individual benefits Flower Mound officials are discussing the creation of a policy that will set target percentages for recovering program costs. Proposed cost recovery tiers
Town officials looked at the policy because of a need to diversify the town’s revenue, according to town documents. Some programs already sup- ported by fees, such as those at the Community Activity Center, would likely be in a higher tier of the policy. Additionally, the cost recovery policy would also protect the town from potential litigation by creating a legally defensible framework, per town documents. Town staff modeled a draft policy presented Jan. 2 after the city of Plano’s. More details Within the policy, town staff have created five
expenses for programs, such as facilities, Zagur- ski added. State law states that a fee becomes an unlawful tax when it starts to function as a revenue generator with profit rather than a cost recovery. “You can see it through impact fees and how we charge licenses and permits,” Zagurski said. “We used to be able to charge building permits based on the cost of the house being built.” Looking ahead Town staff will analyze the results of a council member survey and recommend changes.
Tier 4: 61%-80% recovery Considerable individual and some community support Tier 5: 81%-100% recovery Primary individual benefit
SOURCE: TOWN OF FLOWER MOUND/COMMUNITY IMPACT
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